Teledyne (TDY) Q2 Earnings Beat Estimates, Sales Rise Y/Y
Teledyne Technologies Inc. TDY reported second-quarter 2023 adjusted earnings of $4.67 per share, which beat the Zacks Consensus Estimate of $4.63 by 0.9%. The bottom line improved 5.4% from $4.43 recorded in the year-ago quarter.
The company recorded GAAP earnings of $3.87 per share, up 7.8% from the prior-year period’s $3.59.
Operational Highlights
Total sales amounted to $1,424.7 million, which beat the Zacks Consensus Estimate of $1,416.7 million by 0.6%. The top line improved 5.1% from $1,355.8 million reported in the year-ago quarter. This improvement can be attributed to higher year-over-year sales recorded across all of its four segments in the second quarter.
Teledyne Technologies Incorporated Price, Consensus and EPS Surprise
Teledyne Technologies Incorporated price-consensus-eps-surprise-chart | Teledyne Technologies Incorporated Quote
Segmental Performance
Instrumentation: Sales in this segment improved 5.1% year over year to $328.4 million, driven by higher sales across the marine instrumentation and test and measurement instrumentation product lines.
Adjusted operating income increased 8.4% year over year to $84.9 million, driven by higher sales and favorable product mix.
Digital Imaging: Quarterly sales in this division improved 2.3% year over year to $793.3 million. The increase was driven by incremental sales from recent acquisitions as well as greater sales of x-ray products, commercial infrared imaging components and solutions, and industrial and scientific cameras.
Adjusted operating income rose 3.6% year over year to $170.2 million. This was due to increased net sales and lower acquired intangible amortization expenses in the second quarter.
Aerospace and Defense Electronics: Sales in this segment totaled $186 million, up 10.2% from that recorded in the prior-year quarter. The improvement was driven by higher sales of aerospace electronics and defense electronics.
Adjusted operating income also increased 20.5% year over year to $53.4 million due to higher sales and improved product margins across most defense electronics product categories.
Engineered Systems: Revenues in this division improved 18.5% year over year to $117 million. This increase was mainly due to higher sales of energy systems and engineered products.
Adjusted operating income rose 33.7% to $11.5 million due to higher sales.
Financial Condition
Teledyne’s cash and cash equivalents totaled $364.2 million as of Jul 2, 2023, compared with $638.1 million as of Jan 1, 2023. Total long-term debt was $2,903.2 million compared with $3,620.5 million as of Jan 1, 2023.
Cashflow from operating activities totaled $190.5 million at the end of the second quarter compared with $196.9 million in the year-ago period. Capital expenditure amounted to $27.3 million, up from $20.8 million in the prior-year quarter.
TDY generated free cash flow of $163.2 million, indicating a 7.3% year-over-year increase.
Guidance
Teledyne expects adjusted earnings of $4.70-$4.80 per share in the third quarter of 2023. The bottom-line estimate is pegged at $4.76, higher than the mid-point of the company's guided range.
For 2023, the company still expects adjusted earnings of $19.00-$19.20 per share. The Zacks Consensus Estimate for earnings is pegged at $19.12 per share, higher than the mid-point of the company’s guided range.
Zacks Rank
Teledyne currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Q2 Defense Earnings
Lockheed Martin Corporation LMT reported second-quarter 2023 adjusted earnings of $6.73 per share, which surpassed the Zacks Consensus Estimate of $6.43 by 4.7%. The bottom line also improved 6.5% from the year-ago quarter's figure.
Net sales amounted to $16.69 billion, which surpassed the Zacks Consensus Estimate of $15.86 billion by 5.3%. The top line rose 8.1% from $15.45 billion recorded in the year-ago quarter.
Hexcel Corporation HXL reported second-quarter 2023 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 4.2%. The bottom line improved 51.5% from the year-ago quarter’s level of 33 cents.
Net sales totaled $454 million, which beat the Zacks Consensus Estimate of $445 million by 2.2%. Also, the top line witnessed an improvement of 15.6% from the year-ago quarter’s figure of $393 million.
Raytheon Technologies Corporation’s RTX second-quarter 2023 adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate of $1.17 by 10.3%. The bottom line also improved 11% from the year-ago quarter’s level of $1.16.
Sales of $18,315 million beat the Zacks Consensus Estimate of $17,543 million by 4.4%. The figure also rose 12.3% from $16,314 million recorded in the year-ago period.
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